Transcript:

Yes, because aircraft are mobile transportation property they can actually be subject to use tax in a variety of different states. It’s really important to understand the use profile of your aircraft and where you may have exposure to potential use tax on the full purchase price or on a portion of the current value of the aircraft. It can be tricky because there’s so many states with such different rules and there are states in which you may not owe use tax because of a separate exception, but the only limitations that states have on charging use tax, in multiple states, are that they don’t exceed the total tax on the initial purchase price of the aircraft and that they have what’s interpreted as a constitutional nexus to the aircraft, which can be a relatively low threshold under current law.